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Apache is functioning normally

Banks seeking to sell commercial-property loans are encountering a dried-up market with few options for an easy exit.

Lenders including Goldman Sachs Group Inc. and JPMorgan Chase & Co. have been trying to sell debt backed by offices, hotels and even apartments in recent months, but many are finding that tidying up loan books is no easy feat when concerns about commercial real estate have surged.

This year’s rise in borrowing costs has made commercial real estate one of the hardest-hit areas of the economy. Property sales, especially for office buildings, have slowed to a trickle, giving landlords and lenders few markers to determine the value of certain assets. In the absence of transactions, stakeholders are closely watching the loan sale market to see what price banks can ultimately nab for some of the loans.

Banks have been eager to sell what they can, at times to shore up liquidity or to avoid complicated situations that may crop up when a loan is maturing and needs to be refinanced. For some lenders, taking a slight haircut on the price may be better than running the risk that the lender has to foreclose and ultimately ends up stuck with the property, according to Gregory Hagood, president of SOLIC Capital, which has an investment banking practice.

“Even if most of these are performing loans today, they’re trying to reduce their exposure by selling loans at a discount as they head into a refinance cycle,” Hagood said. “A lot of these banks will say, ‘I’d rather take the hit there than take the hit on a foreclosure and have to deal with the asset after.'”

Goldman and JPMorgan, along with other banks including Capital One Financial Corp. and M&T Bank Corp., have sought to sell property debt in recent months, seeking buyers both for one-off sales and transactions for portfolios of loans, according to people familiar with the matter, who asked not to be identified citing private information.

While pressure is building on banks to reduce their commercial-property exposure, distressed loan sales are still relatively rare. Many banks are opting to hold onto the debt for longer and work out situations with different borrowers.

Hit the Numbers

With so few sales occurring, it’s been hard to figure out exactly what the loans are worth. On top of that, some sellers have become more cautious about what bids they’ll accept, especially after the spate of bank failures earlier this year. Too low of a price could spook investors and raise concerns about the health of the financial institution, according to Josh Zegen, co-founder of Madison Realty Capital, a non-bank lender.

“Some banks have tested the market on office loans and they just can’t hit the numbers,” Zegen said. “There’s too much of a bid-ask spread, and there’s really nothing to talk about because agreeing to the lower pricing would make these banks more insolvent.”

Given the banks’ caution about accepting too low of a price, some lenders have opted to entice buyers through other means. Seller financing has become one option, where the seller helps the loan’s buyer finance the purchase.

It’s become particularly challenging for debt tied to offices — the property type that’s seen its value plummet the most over the past 12 months. Job cuts and the rise in remote work have led to record vacancies across major cities, while higher borrowing costs have made financing more difficult.

“We don’t know yet where tenant demand shakes out, and in the absence of that, you can’t have stability in the market,” said Winston Fisher, a partner at New York-based real estate investment firm Fisher Brothers. “We’re a contractual income business. If you don’t know where that contractual income is going to stabilize, how do you value it?”

Shopping Loans

Capital One has struggled to offload a large office debt portfolio with a heavy concentration in the tri-state area including parts of New York, according to people familiar with the matter who asked not to be identified discussing private information. 

Capital One Chief Financial Officer Andrew Young told investors in July that the bank had moved about $900 million of loans from its office portfolio to a “held for sale” designation as it seeks to offload the debt.

Earlier this year, Webster Financial Corp. sold an $80 million portfolio tied to offices and mixed-use properties in Connecticut, New Jersey and New York.

JPMorgan is exploring a sale of a $350 million loan that’s backed by Manhattan’s HSBC Tower, Bloomberg reported in July. The bank has approached potential buyers to sell the loan at par, while offering cheaper-than-market financing. 

Spokespeople for Capital One and JPMorgan declined to comment.

Banks have also sought to sell debt on other types of real estate besides offices, such as apartments or hotels. Pricing has held up better for those property types, with apartment values dropping 16% over the past 12 months through July compared with a 27% decline for offices, according to real estate analytics firm Green Street. Hotel prices were unchanged over that time period.

Goldman has sought to offload hotel and apartment loans, according to people familiar with the matter, who asked not to be identified citing private information. Meanwhile, M&T is in the market with a hotel loan too, the people said. 

Spokespeople for Goldman and M&T declined to comment.

Lenders that have found buyers for loan portfolios have used the deals to help shore up liquidity at a time of increased stress across the banking industry. PacWest Bancorp, for example, has been selling construction loans and other real estate debt.

Because recent loans at higher rates are more profitable, banks are becoming more inclined to get rid of low-yielding, high-maintenance “dead money” loans with limited prospects for returns, according to Will Sledge, senior managing director in Jones Lang LaSalle Inc.’s capital markets group.

“Liquidity is a prized possession,” Sledge said.

The industry is keenly watching one big potential sale that’s being managed by brokerage Newmark Group Inc. The Federal Deposit Insurance Corp. is seeking to offload about $60 billion of loans — many of which are tied to real estate — from the failed Signature Bank.

Walking Away

Banks are facing the prospects of getting stuck holding the properties in some situations. Large institutions, such as Brookfield Asset Management Ltd., Blackstone Inc. and an office landlord tied to Pacific Investment Management Co., have chosen to cut their losses on some buildings, defaulting on debt. In some instances, landlords have handed the keys back for certain properties.

Aareal Bank AG is working to sell debt on two Manhattan buildings where owners walked away. A unit of the bank is offering non-performing loans on two large offices, one in the Financial District and one in Midtown’s prestigious Plaza District, according to people familiar with the matter. A spokesperson for Aareal Bank declined to comment.

Even if banks are struggling to offload loans, some lenders are controlling their exposure to commercial real estate by halting origination of new debt. Banks including Fifth Third Bancorp have said that they’ve stopped originating office loans.

More deals for old loans would give better clarity on pricing, which could reveal just how different valuations are these days, according to Martin Nussbaum, principal of Slate Property Group. 

“There’s a complete fear around office values and where they stand,” Nussbaum said. Repricing “could be a seismic shift in the asset class.” 

Source: nationalmortgagenews.com

Apache is functioning normally

Every time I get my hair cut, I’m faced with a dilemma — should I tip the barber or not? I usually get my hair cut in a small-town shop. I tip $2 on a $12 haircut. If I get to hear stories about Vietnam or histrionic political rants, I tip $3, even if I don’t agree with the barber’s viewpoints. (I tip because I’ve been entertained.) Sometimes, if I don’t have enough cash, I don’t leave a anything at all. Are these tips appropriate?

What about when I pick up Chinese takeout? Should I have tipped the guys who delivered our new gas range last fall? What about a hotel bellhop? A parking valet? Out of curiosity, I did some research on tipping practices in the United States. There’s actually significant disagreement about how much to tip for even common services.

For example, you know you should tip your waitress. But how much should you leave? Some people claim that 10% is adequate. Others claim that 20% is standard. But I suspect that most of us learned to tip 15%, and to give more for exceptional service. (The wikipedia entry on tipping currently contains the bizarre claim that “18% is generally accepted as a standard tip for good service”.) Which amount is correct?

The concern around tipping stems from the need to get it right — offer too little, and you run the risk of offending someone; offer too much, and you needlessly impact your budget. Plus, there’s actually significant disagreement about how much to tip for even common services.

After browsing dozens of pages, I drafted the following guide. The amounts listed are based on averages or on consensus, when possible.

“Tip: (noun) — a small present of money given directly to someone for performing a service or menial task; gratuity” — Dictionary.com

Food Service

It’s common knowledge that you should tip your waitress. But how much should you leave?

Some people claim that 10 percent is adequate; others believe that 20 percent is standard. But a majority of us learned to tip 15 percent, and to give more for exceptional service. (The Wikipedia entry on tipping contains the rather bizarre statement that “18% is generally accepted as a standard tip for good service.”) So which is it?

Service

Tip Suggestion

Comment

Barista

None

Many people suggest putting coins in the tip jar.

Bartender

15% of total bill or $1/drink

Pre-tip for better service

Delivery Person (including pizza)

10%

$2 minimum

Maitre d’

$5

(… up to $25 for special effort)

Takeout

None

None

Waiter

15% for adequate service

20% for exceptional service. For poor service, leave 10% or less.

General holiday tipping guidelines

  • Holiday tipping is never required. Even when it’s the social norm, you shouldn’t tip if you can’t afford it or you don’t feel the person deserves it.
  • Tipping tends to be more common (and on a larger scale) in big cities than in small towns. The best way to determine the etiquette in your area is to ask around.
  • In general, you should consider giving a holiday tip to the folks who take care of your home and family, especially those you see often. The more often you see someone and the longer you’ve known them, the more you should tip. (Someone who works in your home regularly — such as a housekeeper — usually expects a tip.)
  • For personal services like manicures, massages, pet grooming, and fitness training, tip up to the cost of one session, but only if you see the same person regularly. For example, if you get a $60 massage every six weeks, your holiday tip should be about $60.
  • Public servants are not allowed to accept cash tips in the U.S., but it’s acceptable to give a non-cash gift of up to $20. You might give a plate of cookies to your mail carrier, for example, or a book or a gift certificate to your child’s teacher.
  • When you give a tip, include a card or a hand-written note thanking the person for their service.
  • If you tip cash, crisp new bills make a better impression than old wrinkly ones.

Home Care Service

Here’s a list of people who often receive holiday tips and what they typically receive:

Service

Tip Suggestion

Comment

Babysitter or Nanny

One week’s pay

None

Housekeeper

One week’s pay

None

Building Superintendent

$20 – $100

It varies. Some people think this helps to keep a harmonious relationship with the super.

Doorman

Holiday gift

Bottle of wine

Furniture Deliverer

$5 – $20

It varies. Some people recommend offering cold drinks.

Garbage Collector

$15

(… up to $25 for special effort)

Gardener

One week’s pay

None

Mail Carrier

$15

(… up to $20 non-cash.)

Newspaper Delivery Person

$15 to $25

(… up to $25 for exceptional service.)

Personal Care

Service

Tip Suggestion

Comment

Babysitter

One week’s pay

It varies. Don’t pay this for one-time babysitting.

Barber or Hairstylist

10-15% or 15-20%

Some people recommend $5 to each person who shampoos or blow-dries your hair, and others recommend up to the cost of one visit for the holidays.

Coat checker

$1 per coat

It varies. Some people recommend $2 to $5 upon retrieval.

Home Health Employee, Private Nurse or Personal Caregiver

(… up to a week’s salary)

Check with the agency as some prohibit gifts.

Manicurist

15%

None

Masseuse

10%-15%

None

Nanny

One week’s pay

None

Personal Trainer or Yoga Instructor

$20-$50

Tip discreetly.

Shoe Shiner

$2 or $3

None

Spa Service

15-20%

None

Office Service

Service

Tip Suggestion

Comment

Janitor

$15-$25

None

Parking Attendant

$15-$25

None

Travel

Service

Tip Suggestion

Comment

Bus Driver (not mass transit)

$1-$2

(… if he handles luggage.)

Cab Driver

10%

($2-$5 minimum)

Chauffer

10%-15%

None.

Gas Station Attendant

None

(or $2 -$4 – there’s no agreement on tips).

Porter or Skycap

$1 per bag

(… $2 for heavy items, if the porter brings luggage to counter)

Hotel Staff

Service

Tip Suggestion

Comment

Bellman or Porter

$1-$2 per bag, $5 minimum

Or $1 per bag, $2 minimum

Concierge

$5

(… up to $20 for something exceptional; nothing for directions.)

Housekeeper

$2-$5 per night, paid daily or as a lump sum at checkout

Most suggest you tip daily.

Parking Valet

$2-$5 paid when your car is retrieved

Some say to pay when it’s parked too.

Room Service

$5 minimum

(unless the gratuity is included in check)

Most of these relate to holiday tipping, but some suggestions are appropriate any time of year. Of course, giving a tip is an individual decision. J.D. Roth used to tip the barber extra if he got to hear an entertaining story about Vietnam or histrionic political rants. What influences you to give a larger or smaller tip? Do you have any suggestions to add?

Source: getrichslowly.org

Apache is functioning normally

So a guy, an Austrian fellow named Andreas Gindelhuber, with apparent dreams of making money in real estate here in the United States, resorted to selling his home in exchange for an iPhone 6 last week.

He originally purchased the foreclosed 3-bedroom, 1.5-bath Detroit home (you probably already knew it was in Detroit) for $41,000 in April 2010, per Zillow.

Two weeks later, it was listed for rent at a seemingly reasonable $750 per month. After languishing on the market for two months, Gindelhuber lowered the rental price to $695 per month and finally found some tenants.

But the neighborhood where the home is located was hard hit by the housing crisis, prompting nearby residents to move out and leave their properties behind.

Eventually his tenants also headed for the exits, leaving the place vacant and in disrepair. He also had a $6,000 delinquent property tax bill to worry about, so he hired local real estate agent Larry Else to market the property.

It’s unclear how the property got so badly damaged, but it’s supposedly missing all its doors and windows, and also has extensive smoke damage. I’ve heard about houses getting set on fire in Detroit…

Anyway, it seemed no one wanted the thing, even for the price of FREE.

Still, Gindelhuber listed the badly damaged property for $5,000, hoping to get some interest from somewhere, hopefully.

Then reality set in, forcing him to lower the asking price twice in two months, first to $4,000 and then to $3,000.

Then His Real Estate Agent Got Creative

That still didn’t cut it, so Gindelhuber and Else brainstormed. At some point Else remembers Gindelhuber telling him he would trade the house for an iPhone 6 or a new iPad 32 GB.

Realizing it could be a great publicity stunt that would no doubt put Else’s name on the map, they decided to add the potential barter to the official listing.

It didn’t take long for news outlets to pick up on the story, including a local Fox affiliate and Yahoo!, then it went viral.

A short week or so later the property has been sold to a local man (who lives down the street) for an unknown price, but apparently less than $1,000.  He plans to fix it up.

The funny part about the story is that Gindelhuber didn’t actually get his iPhone 6 or iPad in exchange for the sale.

But thanks to the Internet and its greatness, a man from Germany has offered to donate his brand new iPhone 6 to Gindelhuber.

The story also wound up in a German magazine, prompting the man to e-mail Else, claiming the story “touched me somehow.”

So it all worked out.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Three months ago I wrote about the high cost of being fat. I had spent $4500 over four years because of my weight. The problem wasn’t just costing me money — it had caused sleep apnea, a torn ACL, and mild depression, three conditions which eroded my quality of life.

Then a reader issued a challenge. Lauren Muney wrote to provide her services as a wellness coach free for one month: “I’m offering this to you because I’ve been reading your blog daily and I want to give back,” she said. She continued:

Most people think that coaching is bull. It’s amazing how much money people will spend on diet books, fad equipment, diet pills, and the like — and never budge an inch. I just talk to my clients. They drop 10, 20, even more pounds of weight, plus they retain the weight loss and make life changes they never thought possible. But it is they who do the work and they who take the glory. I know you understand the value of getting rich slowly but carefully. It’s the same with fitness and lifestyle changes — the good stuff is slow, but it sticks.

For years I’ve complained about being fat. People are sympathetic, but nobody had ever laid it on the line like this before. It felt strange. Lauren was offering to help me, but only if I were willing to take responsibility for my actions. I was scared. I realized that an impartial third-party — an expert third party — was exactly the sort of motivation I needed to succeed. (I’ve always worked best under supervision.) I decided I’d be a fool to refuse her offer.

Lauren had me begin by keeping track of everything I ate. (This is similar to my admonition to track everything you spend.) I knew my diet was poor, but I never realized how poor until I began to keep a food journal: donuts for breakfast, candy bars for lunch, Safeway Chinese food for dinner. I recorded everything in gory detail. After Lauren looked at the data, we spent an hour by phone discussing my habits, exploring ways I could change them. Among other steps, she had me:

  • Eliminate excess sugar. It was clear that I’d become a sugar junkie. Eating donuts and candy bars and sucking down soda was giving me more refined sugar than my body could handle.
  • Reduce alcohol consumption. I’d been having a drink or two most nights. On Lauren’s advice, I cut back to almost nothing. (I still have a drink at parties or on special occasions.)
  • Reduce caffeine consumption. So long, soda. So long, tea. I used to be a Diet Pepsi junkie. I had a weakness lapsang souchong. Now caffeine is a rarity.
  • Eliminate processed foods. Most of my meals were from one of two food groups: canned or frozen. Canned soup, canned chili, canned pasta, canned vegetables. Frozen pizza, frozen lasagna, frozen chicken patties, frozen fish. Lauren had me purge processed foods from the house. (This was difficult for a frugal person like me — each discarded TV dinner was like throwing away money.)
  • Introduce whole foods into my diet. I’ve always struggled to eat enough fruits and vegetables. Even with this program, I’m not getting as much as I should, but I’ve gone from eating a couple a week to eating a couple a day. That’s a huge improvement.
  • Drink water. Humans are ugly bags of mostly water. I wasn’t getting enough of it. By drinking more water, my hunger subsided.
  • Eat balanced meals. Lauren emphasized the importance of having a protein, a carbohydrate, and a fat with every meal. I thought this change would be pointless, but have been surprised at how effective it has been at satisfying my hunger.
  • Exercise portion control. I have a natural tendency to eat huge portions. Lauren coached me to reduce my portion sizes so that I’m not overeating.

Lauren’s advice wasn’t all about food, though. She stressed the importance of physical activity. She had me do the following:

  • Obtain a complete physical. We were particularly curious if I showed signs of diabetes. (My addiction to sugar, and my reaction to it, are worrying.) I don’t. My cholesterol is borderline, but other than that things look fine.
  • Buy a pair of running shoes. I’d been walking and jogging in a pair of fashionable sneakers. Lauren had me actually get fitted for shoes that matched my stride.
  • Meet with a running expert. I made an appointment with the owner of the running store. He spent time demonstrating proper form, showing me how to improve my stride.
  • Practice mindfulness. A lot of my behavior was reflexive. I was just eating whatever I felt like, or whatever was in front of me. Lauren urged me to slow down, to question my actions.

Over the course of one month Lauren and I spoke weekly about my progress. During each session she praised my success and helped me to learn from my failures. After each conversation, she drafted an e-mail that summarized the goals we’d set for the coming week. This process worked wonders.

Lauren helped me see the barriers I had created: “I can’t eat breakfast because I don’t have time”, “I need to eat all of the leftovers”, “It’s too cold and wet to exercise”. These barriers still exist, but now I recognize them for what they are. And I’ve learned something: 80% of wellness is mental. Just as with personal finance, physical fitness is about overcoming mental barriers.

I learned not to bring temptations into the house. I’m good about saying “no” to the big things — a package of cookies at the grocery store — but I’m terrible at saying “no” to the little things. A single cookie at home becomes two, which becomes three, which becomes an entire plate. I have the discipline to resist an entire package of cookies, but not to resist them individually, so I keep them out of the house completely.

I’ve stuck to the plan for three months now. I had a ten-day lapse around Christmas — all the cookies from friends were too much to resist — and I need to ramp up my exercise, but things are going well. I’ve lost thirteen pounds. I have more energy. I’m not foggy-headed from sugar. Best of all, I’m no longer suffering from the depression that has dogged me for the past two years.

I couldn’t have done this without the help of a wellness coach. Because Lauren exists outside my daily life, outside my family, outside my circle of friends, she’s able to point out problems without the baggage of other relationships. There’s still a lot of work to be done. In early March, when spring begins to peek its head through the Oregon rain, I’ll contact Lauren to set up another month of coaching, but this time as a paying customer!

As the proprietor of Physical Mind, Lauren Muney specializes in lifestyle improvement and increasing human performance for personal, professional, and business endeavors. She’s also a crack whip artist! And a fire-eater!

Source: getrichslowly.org

Apache is functioning normally

In the technology world, and more specifically, the venture capitalist world, the word “disrupt” gets thrown around an awful lot. Too much really. There’s even a Disrupt conference.

Every new business these days seeking millions of dollars in funding has grand plans to disrupt the status quo, whatever that might be in a given industry.

Of course, many great (and silly) ideas never actually materialize because of the many hurdles a company must climb to effect change.

But that hasn’t stopped Lenda, a California-based online mortgage refinance shop, to dream the impossible dream.

Mortgages in Seconds? Yeah Right…

  • Lenda’s ultimate goal is to fund mortgages in seconds
  • As opposed to weeks or months
  • A lofty goal but one that isn’t unique to the disruptors
  • You can’t argue that the mortgage industry is in need of change and could definitely be a lot faster

Lenda apparently has plans to eventually fund mortgages in a matter of seconds, as opposed to days or even months.

At the moment, they’re being a little more reasonable, shooting for 21 days from application to close, as opposed to the industry average of 39 days, per the latest Ellie Mae Origination Insight Report.

However, their near-term goal is to get that number down to a week (7 days), and eventually 48 hours. If that all pans out, their “mortgages in seconds” mantra could potentially become reality.

And while it all sounds crazy, part of me is thinking, “Why not?” Why is the mortgage industry the same as it has always been? Why can’t a company come along and pull an “Uber” and make a meaningful change in this space as well?

I’m assuming doubters will first point to the regulatory landscape, which makes it difficult to get anything done quickly in the mortgage world. All that paperwork is also a concern.

Not to mention the many different parties that must all come together to get a home loan funded.

No Middleman or Sales Staff at Lenda

  • One thing they’ve done to differentiate themselves
  • Is cut out the sales staff
  • This should translate to a cheaper home loan for the borrower
  • They also rely on technology like electronic delivery of paperwork to speed things up and make life easier for homeowners

But Lenda claims to do things differently, working exclusively online to get loans funded quicker and more efficiently.

For example, you can fill out the mortgage application online and use DocuSign to send over electronically signed documents, which translates to 40 fewer pages to print, sign, and fax. It’s also good for the environment.

During the application process it tells you how many pages of paperwork you’ll avoid, along with the number of headaches. Cute.

In the future, they hope to provide instant approvals after a credit pull, at which point an exact list of conditions would be generated. And borrowers could soon have the ability to pull real-time data, such as bank statements and tax returns, into the application.

They’ve also cut out the “middleman,” aka the sales rep, to both streamline the process and cut down on costs.

Lenda claims to save at least $8,000 per refinance by eliminating the mortgage broker and going with a direct-to-consumer approach, although the rates/fees I saw didn’t seem all that different from what I’ve seen elsewhere.

Why Use Lenda to Get a Mortgage?

  • The home loan process is completed entirely online
  • They might offer lower mortgage rates thanks to their tech and lack of salespeople
  • You can get a $500 lender credit if someone refers you to Lenda
  • Might be able to close faster than traditional lenders
  • But they only offer 30-year and 15-year fixed-rate mortgages

If you’re wondering why you should choose Lenda, one key advantage is that the home loan process is entirely digital. Aside from being easier, it might result in a faster loan closing.

Additionally, Van den Brand says mortgage interest rates are generally about an eighth- to a quarter-percent lower than other lenders, and that the APR will be lower via reduced closing costs.

That’s all good and well, but will they actually be able to shorten the process and reduce the burden on the consumer? Time will tell on that one.

They’ve certainly got a good group of investors, including Tom Fallows of Google Shopping Express, Winklevoss Capital (those Facebook twins), Kiva investor Sundeep Ahuja, and PayPal investor Jared Kopf, to name but a few.

Lenda recently received $1.54 million in seed money and plans to enter several more states in the future. They currently lend in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington, though they’re licensed in 43 states.

At the moment, they only offer 30-year and 15-year fixed-rate mortgages backed by the underwriting guidelines of Fannie Mae and Freddie Mac. So there are some loan type limitations that won’t satisfy all homeowners.

Future product offerings include jumbos, HARP, FHA, and CRA loans, and perhaps adjustable-rate mortgages.

Now just imagine if companies like Opendoor and Lenda come together.  We’ll be able to buy, sell, and finance homes in hours, or maybe even seconds with nothing more than our smartphones.

While they only operate in 12 states currently, Lenda expects to go live in other states in the near future.

Update: In early 2019, Lenda became Reali Loans thanks to the company’s acquisition by fintech startup Reali.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Credit…Jonathan Carlson
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Feeling Mortgage-Rate Envy? You’re Not Alone.

With interest rates climbing, a new form of one-upmanship is making the rounds: the mortgage-rate humble brag.

  • Aug. 4, 2023

At a rooftop party on a steamy July night in Philadelphia, the margarita machine was churning, the seafood boil was hearty, and the conversation turned to the default of the upwardly mobile: real estate.

Almost anyone shopping for a home in the 2020s knows the script by now: Someone mentions their recent home purchase, a tale undoubtedly rich with drama, stress and suspense. Guests, well schooled in the volatility of the housing market, lean in for the follow-up: When did you buy?

The response to that key question “is normally followed by an ‘Oooh,’” said Evan Barker, 36, a lawyer who attended the party and has participated in enough of these exchanges to know that the “Oooh” means one of two things: You either got the interest rate of a lifetime, or you squarely did not.

the 30-year mortgage rate bottomed out at 2.65 percent, a few months before Mr. Barker and Ms. Gallagher refinanced, besting the national average with a rate of 2.375 percent.

smug, shocked or hopeless, depending on where you fall on the spectrum.

“There is almost a cross-generational envy,” said Övül Sezer, an assistant professor of management and organizations at Cornell University, who studies humble bragging.

Flaunting wealth and good fortune is nothing new. But Americans, for the most part, avoid sharing specifics about money. Sure, you’ll plaster news about your promotion on Facebook and on the platform formerly known as Twitter, but you’ll probably keep mum about the salary package that comes with it. When it comes to real estate, the attitude is no different. A gleeful homeowner may gloat about vanquishing the competition in a bidding war, but they won’t mention the sale price, or their monthly payments.

Federal Reserve’s continued efforts to wrestle inflation under control. So timing, not skill, dictates the rate — and timing is a byproduct of luck.

The pandemic exacerbated inequalities that existed before 2020. For many wealthier Americans, the pandemic was a financial boon. They kept their jobs, were able to work remotely, enjoyed bonuses and raises, and had cash on hand when interest rates plummeted to keep the economy afloat. They were the ones best positioned to pluck up homes, driving up prices. The people who spent 2020 and 2021 struggling through job losses, illnesses or other financial hardships likely missed out on the moment, and are now the ones enduring the hard consequences of rampant inflation.

The interest rate cut “was this free handout to people who didn’t really need it,” said Daryl Fairweather, the chief economist at Redfin. For everyone else, “that door closed as soon as people started to get back on their feet.”

Or as Sharon Reshef, who last month bought a $400,000 one-bedroom apartment in Washington D.C., put it: “It’s really hard to plan your life around macroeconomics.”

That hasn’t stopped some of her slightly older colleagues in Senator Kirsten Gillibrand’s office from teasing her about her 6.625 percent interest rate.

“It’s just a gentle ribbing,” said Ms. Reshef, 30, the research director for the senator from New York, who now spends half of her take-home pay on her mortgage. “But as long as we’re here, I will say that not a lot of people in my cohort own property, especially as a single person. Regardless of the interest rate, I have that one up on them. I can definitely brag.”